PVH Corp Q3 2024 Revenue Declines 5%; Inventory Increases 9%

US fashion powerhouse PVH Corp has reported a notable decline in revenue for the third quarter of 2024, reflecting broader trends in the apparel market. The company, known for its iconic brands including Tommy Hilfiger and Calvin Klein, posted revenue of $2.25 billion for the quarter ending November 3, marking a 5% decrease compared to the same period last year. On a constant currency basis, this figure fell by 6%, and the net income stood at $131.9 million, down from $161.6 million year-over-year.

Throughout the first nine months of 2024, PVH saw total revenues of $6.28 billion, down from $6.73 billion in 2023. Despite the revenue drop, net income during this period rose to $441.3 million, an increase from $391.8 million the previous year. Diluted earnings per share for the quarter were reported at $2.34, down from $2.66 in the same quarter last year.

One of the key challenges PVH faced in Q3 was a 9% rise in inventory compared to the previous year, highlighting the ongoing struggle to align supply with demand in a shifting retail landscape. The company attributed the subdued performance partly to a strategic decision to reduce sales in Europe, aimed at enhancing the quality of sales in that region. This strategic pivot has also contributed to an 8% decline in wholesale revenue and a modest 1% increase in revenue from owned and operated stores.

Looking ahead, PVH Corp is forecasting a continued decline in revenue for the full fiscal year 2024, expecting a drop of 6% to 7% year-over-year. The fourth quarter is anticipated to mirror this trend, with a similar percentage decline projected. The remarks from CEO Stefan Larsson underscore the company’s commitment to its long-term growth strategy, emphasizing improved consumer engagement and product momentum as key focus areas as they head into the holiday season.

In a financial outlook that factors in external pressures, including foreign currency fluctuations, PVH’s operating margin for 2024 is estimated to be around 9.2%, a decrease from 10.1% in the previous year. As the company navigates these challenges, its leadership remains focused on cultivating sustainable and profitable growth, reinforcing the strength of its renowned brands.

Stay tuned as PVH Corp continues to adapt to the evolving market landscape, aiming to deliver attractive returns for its shareholders while enhancing the quality of its offerings across the board.